If crowdfunding is a viable alternative to microfinance in poor countries.

Question

Want to see the full answer?

Answer 1

Question

Chapter 35, Problem 2.5P

To determine

If crowdfunding is a viable alternative to microfinance in poor countries.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Which classification of entrepreneur does Rhodes fall into? What qualities of an entrepreneur does she probably possess?Discuss how struggling with adversity might have helped Rhodes begin her business. What kind of success do you think Glassybaby might realize if it didn’t have a philanthropic focus as part of its business? When cancer patient Lee Rhodes was unexpectedly soothed by the reflective light of a simple candle inside a glass-blown votive holder, a business was born. Today, Glassybaby produces hand-blown votive candles that require over 70 glassblowers, three layers of glass, and a 24-hour process to make. Coming in 400 colors, with names like Begin Again, BFF, and Fearless, they sell for $44 each. Recent sales are expected to top $9 million at eight retail storefronts and online.

A couple things that Mexico can do to raise money on the global capital market is to use either debt capital or equity capital. Debt capital usually comes in the form of loans, while equity typically comes in the form of cash in exchange for stock ownership. One of the benefits for using debt is that a large amount of money can be raised without diluting equity. Debt financing usually involves an entity borrowing money from a lender and paying it back at a later date. Raising equity usually occurs when selling shares of stock to investors. The advantage of this method is that Mexico would not have to worry about regular interest payments on debt as well as fluctuation of exchange rates. The only downside is that selling shares of stock would result in the dilution of equity for Mexican firms. I would personally recommend debt financing that way Mexico would not be diluting the equity of their firms, while also being pressured to make sure that firms remain profitable in order to…

Both Private Property and Limited Government are integral to a purely Capitalistic economic system. The USA is not a purely Capitalistic economic system. Why